The report of the Government Geologist is as follows:— “I have the honour to report that I have made two inspections, on the 25th and 27th instant, of the coal-cargo of the ship “Knight of St. Michael,” and have to report as follows: Previous to my visit the cargo had been inspected several times by the marine surveyors, copies of whose reports are herewith. From these reports it will be seen that the ship left Newcastle on the 1st February with a cargo of 3,216 tons of Wallsend coal. On the 2nd February the master took temperature at intervals between 8 a.m. and noon, and found that in No. 2 hatch it rose from 96° to 104°. He therefore put into Sydney Harbour, and on the 4th February the cargo was surveyed, and the temperature in No. 2 hatch was found to be 105°. The surveyors thereupon recommended the discharge of 300 tons of coal from this hatch. On the 6th February the surveyors made a second inspection, after the 300 tons had been nearly discharged, and, finding the coal still much heated on the surface, they recommended the discharge of a further quantity of about 500 tons, or until the ceiling was left practically clear. The cargo was again inspected by the surveyors on the 11th, 12th, and 14th instant, and on the latter date they were of opinion that all the heated coal had been taken out, and that the remainder was fit to be carried on. On the 14th instant the captain reported that the temperature of the coal in No. 3 hatch was rising. The surveyors confirmed this on the 17th, and also found a slight increase of temperature in the coal in No. 4 hatch. They therefore recommended-that coal be shifted from hatches Nos. 3 and 4 into No. 2 until the heated coal was reached, and that the heated portion be then removed and sold. On the 21st they reported, after another inspection, that there were no signs of heating in the remainder of the cargo, and it was therefore assumed that the difficulty had been overcome. Subsequently, however, it was ascertained that the temperature was again rising in No. 2 hatch, and I was then requested to report upon the matter. At about 9.30 a.m. on the 25th instant I found a temperature of 84° Fahr. in the centre of the coal immediately underneath No. 2 hatch, while in the hold near the side of the vessel the temperature was only 77°. It was noticeable that the coal contained a large proportion of small and dust. At about 9.45 a.m. on the 27th February I found that the temperature had risen to 88° Fahr. in the centre of the coal under No. 2 hatch, while in the hold near the side of the vessel it was 76°. At the same hour the temperature of the coal in No. 3 hatch was 79°, and in No. 4 hatch it was 73°, while the shade temperature on deck was 69°. It is clear from the foregoing remarks that the temperature of portions of the